Public Employees' Medical and Hospital Care Act: postemployment health benefits: employer contributions: City of Indio.

Existing law requires the Board of Administration of the Public Employees' Retirement System to administer the Public Employees' Medical and Hospital Care Act. Existing law permits a contracting agency to elect to be subject to the act for its employees and annuitants, provided that the contracting agency and each employee or annuitant contribute a portion of the cost of providing the benefit coverage afforded under the health benefit plan approved or maintained by the board in which the employee or annuitant may be enrolled. Existing law specifies that the employer contribution of a contracting agency begins on the effective date of enrollment and is the amount fixed from time to time by resolution of the governing body of the agency. Existing law provides an optional vesting schedule, for contracting agencies, that links the employer contribution, as specified, to percentages associated with an employee's credited years of service. Under this formulation, the employer contribution for the contracting agency reaches 100% of a specified amount when the employee attains 20 years of credited service, with certain exceptions. This bill would require the employer contributions for postretirement health benefit contribution for postretirement health benefit coverage for an annuitant of the City of Indio who is first hired on or after October 1, 2013, to be based on specified percentages associated with the annuitant's credited years of service performed with the city, provided that the city not pay an employer contribution for the first 10 years of that credited service. Under this formulation, the employer contribution would be 50% for 10 years of credited service, increasing incrementally by 5% for each additional credited year of service, and reaching 100% if the annuitant attained 20 years of credited service. The bill would require the employer contribution with respect to each annuitant to be mutually agreed upon through collective bargaining by the City of Indio and the exclusive representatives of employees of the city and would allow the employer to adjust the amount from time to time through a collectively bargained memorandum of understanding. If the employees are not represented by a recognized bargaining unit, the employer contribution would be determined by a resolution passed by the city council, as specified.